What Is a Good Credit Score? Part 1

First, it’s important to keep in mind that you have several different credit scores. For example, on Credit Karma you get your TransUnion New Account Score, which has a range of 300-850, and your VantageScore, which has a range of 501-990.

Let’s say you need a mortgage for a new home. On an 850 scale, you’ll need a score of 720 or above to lock in the best interest rates for a conventional loan. A score between 620 and 650 might also get you that loan, but with a higher interest rate, which can cost you thousands of dollars over the life of a loan. In other words, a good credit score will save you money.

Now, 720 is just a guideline. Depending on the type of credit score used and other factors, the number you need for the best interest rates will vary. Still, it’s a good goal to aim for.

Stay tuned for our next video, where we’ll explore this topic further.

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9 Comments

Credit score is something that you should think about since it really matters nowadays. Owning a credit card may seem to be a good symbol status of paying things without having cash around but overusing it may hurt you and your pockets. Do not be easily tempted to do impulse buying just because you can. You might not realize it but how you use your credit card can hurt your credit score. Before you get yourself in financial trouble, be knowledgeable on different credit score tips you can follow. These credit score tips can guide you along the way to a good credit score. Here are some of the top credit score tips you can check out.

How can I increase my credit score within the next 1-3 months? I’ve already disputed incorrect items on my report and some was taken off but my score dropped from a 608 to a 557. I would like to purchase a home sometime this year and my mortgage broker said he can get me approved for an FHA loan, but my score needs to be at least 580.

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